FDI in services sector plunges 62% during April-October 2013
16 Dec 2013 11:19 PM GMT
The services sector, which includes banking, insurance, outsourcing, R&D, courier and technology testing, had received FDI worth $3.6 billion during April-October 2012, an official in the Department of Industrial Policy and Promotion (DIPP) said.
According to industry experts, foreign investors are waiting for the new government.
‘As services sector such as banking need necessary reforms, investors are waiting for the new government for bringing relevant changes in the policy. Although the present government has taken steps to attract investments, more needs to be done,’ said Krishan Malhotra, an expert on FDI with corporate law firm Amarchand & Mangaldas. In the banking sector, foreign capital inflows are low due to certain restrictive and tough norms, another expert said.
In step with the drop in FDI in important sectors like services, overall foreign inflows in the country has come down to $12.6 billion during the seven months of the current fiscal. It was $14.78 billion in April-October 2012. The services sector contributes over 60 per cent to India's GDP. In 2012-13, foreign investment in services fell to $4.83 billion from $5.21 billion in 2011-12.
The other sectors where inflows have declined include power ($320 million) and metallurgical industries ($245 million). However, to attract investment, the government is considering raising the FDI cap in insurance sector to 49 per cent from 26 per cent. A Bill regarding this is pending in the parliament since 2008.
Foreign investments are considered crucial for India, which needs around $1 trillion in the next five years to overhaul its infrastructure sector such as ports, airports and highways to boost growth. Decline in foreign investments could affect the country's balance of payments (BoP) situation and also impact the rupee.
First two weeks of December net Rs 8,500 crore of FIIs’ investment
NEW DELHI: Overseas investors have poured in over Rs 8,500 crore (about $1.4 billion) in the equity market this month amid expectations that the BJP's victories in state assembly polls have brightened the party's prospects in next year's Lok Sabha elections.
Foreign institutional investors (FIIs), the major participants in the Indian stock market, were gross buyers of shares worth Rs 32,163 crore and sellers of equities worth Rs 23,608 crore till December 13, resulting in a net inflow of about Rs 8,555 crore, according to Sebi data.
So far in 2013, FIIs have invested Rs 1.05 lakh crore ($18.9 billion) in the domestic stock market.
Analysts said the assembly poll results in Rajasthan, Madhya Pradesh, Chhattisgarh and Delhi sparked optimism about the Bharatiya Janata Party's chances in the 2014 general elections.
Some experts believe BJP prime ministerial candidate Narendra Modi's position has been strengthened. They expect a BJP-led government would be more pro-reform and speed up legislative steps needed to spur economic growth.
The BJP secured landslide wins in Rajasthan and Madhya Pradesh, retained power in Chhattisgarh and was just short of a majority in Delhi.
However, overseas investors have pulled out a net Rs 3,795 crore from the debt market so far this month. Since the beginning of 2013, they have withdrawn Rs 52,343 crore.
As of 13 December, the number of registered FIIs in the country stood at 1,745 and the total number of sub-accounts was at 6,398.
Five blue-chip firms lose Rs 22,582 crore in value
Mumbai: Dragged down by the state-run ONGC, the combined market capitalisation of five blue-chip companies declined by Rs 22,582 crore last week.
ONGC alone accounted for more than half of the drop, with its m-cap slumping Rs 12,063 crore to Rs 2,39,981 crore. Other companies that lost market value were Reliance Industries, Coal India, Bharti Airtel and HDFC. The firms that gained were TCS, ITC, Infosys, HDFC Bank and Wipro. Bharti Airtel’s market-cap slipped Rs 4,437 crore to Rs 1,28,336 crore, while Coal India lost Rs 3,821 crore to Rs 1,79,100 crore. The market value of Reliance dipped Rs 1,260 crore to Rs 2,78,969 crore, while that of mortgage lender HDFC fell by Rs 1,001 crore to Rs 1,25,802 crore. Wipro added Rs 6,327 crore to Rs 1,27,942 crore in value to become the new entrant in the top-10 list, while the m-cap of Infosys soared by Rs 2,713 crore to Rs 1,93,738 crore. The market valuation of ITC jumped Rs 2,697 crore to Rs 2,49,880 crore, while that of HDFC Bank rose by Rs 1,927 crore to Rs 1,65,225 crore. The value of TCS went up by Rs 578 crore to Rs 3,92,313 crore. TCS continued to rule the top-10 list, followed by Reliance, ITC, ONGC, Infosys, Coal India, HDFC Bank, Bharti Airtel, Wipro and HDFC. Over the past week, the benchmark S&P BSE Sensex fell 1.33 per cent to 20,715.58. In the past four sessions, it has dropped 611 points from a record closing high on 9 December.
According to industry experts, foreign investors are waiting for the new government.
‘As services sector such as banking need necessary reforms, investors are waiting for the new government for bringing relevant changes in the policy. Although the present government has taken steps to attract investments, more needs to be done,’ said Krishan Malhotra, an expert on FDI with corporate law firm Amarchand & Mangaldas. In the banking sector, foreign capital inflows are low due to certain restrictive and tough norms, another expert said.
In step with the drop in FDI in important sectors like services, overall foreign inflows in the country has come down to $12.6 billion during the seven months of the current fiscal. It was $14.78 billion in April-October 2012. The services sector contributes over 60 per cent to India's GDP. In 2012-13, foreign investment in services fell to $4.83 billion from $5.21 billion in 2011-12.
The other sectors where inflows have declined include power ($320 million) and metallurgical industries ($245 million). However, to attract investment, the government is considering raising the FDI cap in insurance sector to 49 per cent from 26 per cent. A Bill regarding this is pending in the parliament since 2008.
Foreign investments are considered crucial for India, which needs around $1 trillion in the next five years to overhaul its infrastructure sector such as ports, airports and highways to boost growth. Decline in foreign investments could affect the country's balance of payments (BoP) situation and also impact the rupee.
First two weeks of December net Rs 8,500 crore of FIIs’ investment
NEW DELHI: Overseas investors have poured in over Rs 8,500 crore (about $1.4 billion) in the equity market this month amid expectations that the BJP's victories in state assembly polls have brightened the party's prospects in next year's Lok Sabha elections.
Foreign institutional investors (FIIs), the major participants in the Indian stock market, were gross buyers of shares worth Rs 32,163 crore and sellers of equities worth Rs 23,608 crore till December 13, resulting in a net inflow of about Rs 8,555 crore, according to Sebi data.
So far in 2013, FIIs have invested Rs 1.05 lakh crore ($18.9 billion) in the domestic stock market.
Analysts said the assembly poll results in Rajasthan, Madhya Pradesh, Chhattisgarh and Delhi sparked optimism about the Bharatiya Janata Party's chances in the 2014 general elections.
Some experts believe BJP prime ministerial candidate Narendra Modi's position has been strengthened. They expect a BJP-led government would be more pro-reform and speed up legislative steps needed to spur economic growth.
The BJP secured landslide wins in Rajasthan and Madhya Pradesh, retained power in Chhattisgarh and was just short of a majority in Delhi.
However, overseas investors have pulled out a net Rs 3,795 crore from the debt market so far this month. Since the beginning of 2013, they have withdrawn Rs 52,343 crore.
As of 13 December, the number of registered FIIs in the country stood at 1,745 and the total number of sub-accounts was at 6,398.
Five blue-chip firms lose Rs 22,582 crore in value
Mumbai: Dragged down by the state-run ONGC, the combined market capitalisation of five blue-chip companies declined by Rs 22,582 crore last week.
ONGC alone accounted for more than half of the drop, with its m-cap slumping Rs 12,063 crore to Rs 2,39,981 crore. Other companies that lost market value were Reliance Industries, Coal India, Bharti Airtel and HDFC. The firms that gained were TCS, ITC, Infosys, HDFC Bank and Wipro. Bharti Airtel’s market-cap slipped Rs 4,437 crore to Rs 1,28,336 crore, while Coal India lost Rs 3,821 crore to Rs 1,79,100 crore. The market value of Reliance dipped Rs 1,260 crore to Rs 2,78,969 crore, while that of mortgage lender HDFC fell by Rs 1,001 crore to Rs 1,25,802 crore. Wipro added Rs 6,327 crore to Rs 1,27,942 crore in value to become the new entrant in the top-10 list, while the m-cap of Infosys soared by Rs 2,713 crore to Rs 1,93,738 crore. The market valuation of ITC jumped Rs 2,697 crore to Rs 2,49,880 crore, while that of HDFC Bank rose by Rs 1,927 crore to Rs 1,65,225 crore. The value of TCS went up by Rs 578 crore to Rs 3,92,313 crore. TCS continued to rule the top-10 list, followed by Reliance, ITC, ONGC, Infosys, Coal India, HDFC Bank, Bharti Airtel, Wipro and HDFC. Over the past week, the benchmark S&P BSE Sensex fell 1.33 per cent to 20,715.58. In the past four sessions, it has dropped 611 points from a record closing high on 9 December.
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